Market Insights Financial Wealth Management

Digital Investment - GCC

The Digital Investment market in the GCC is projected to reach a total transaction value of US$10,810.00m in 2024.
This market segment is expected to display an annual growth rate (CAGR 2024-2027) of 6.34%, resulting in a projected total transaction value of US$13,000.00m by 2027.
Among the various players in this market, Robo-Advisors dominate with a projected total transaction value of US$7,357.00m in 2024.
The United States leads with the highest cumulated transaction value, reaching US$1,782,000.00m in 2024.
In the rapidly growing digital investment market in the GCC, the United Arab Emirates stands out as a frontrunner in attracting global tech investors.

Key regions: United Arab Emirates, Switzerland, Singapore, United Kingdom, Europe

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Analyst Opinion

The Digital Investment market in GCC is experiencing significant growth and development, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the GCC region are shifting towards digital investment platforms due to their convenience, accessibility, and cost-effectiveness.

Investors are increasingly looking for online platforms that provide them with a wide range of investment options, real-time market data, and personalized investment advice. They also value the ability to manage their investments on-the-go through mobile applications. As a result, digital investment platforms are gaining popularity among both individual and institutional investors in the GCC.

Trends in the market indicate that digital investment platforms are evolving to meet the changing needs of investors in the GCC. These platforms are incorporating advanced technologies such as artificial intelligence and machine learning to provide personalized investment recommendations and automate portfolio management. They are also expanding their product offerings to include alternative investments such as cryptocurrencies and real estate.

Additionally, digital investment platforms are partnering with traditional financial institutions to offer hybrid solutions that combine the benefits of digital platforms with the expertise of established financial advisors. Local special circumstances in the GCC region are also contributing to the development of the Digital Investment market. The GCC countries have a young and tech-savvy population that is increasingly comfortable with using digital platforms for financial transactions.

Moreover, the region has a high smartphone penetration rate, which further facilitates the adoption of digital investment platforms. Additionally, the GCC governments are actively promoting digital transformation and financial technology innovation, creating a conducive environment for the growth of the Digital Investment market. Underlying macroeconomic factors such as economic diversification and the need for alternative investment options are driving the development of the Digital Investment market in the GCC.

The GCC countries are striving to reduce their dependence on oil revenues and are focusing on developing non-oil sectors such as technology and finance. This economic diversification is fueling the demand for digital investment platforms as investors seek new opportunities for wealth creation. Furthermore, the low interest rate environment in the GCC is pushing investors towards alternative investment options, including digital investments, to generate higher returns.

In conclusion, the Digital Investment market in the GCC is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As investors in the region increasingly embrace digital platforms for their investment needs, the market is expected to continue its upward trajectory in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.